Greek Bonds Fall on Restructuring Woes; Fitch Cuts Rating to B+

Greek bonds led declines among peripheral euro-area nations, sending 10-year yields to a record, on concern a restructuring of its debt would reignite Europe’s sovereign-debt crisis.

The spread, or yield difference, between benchmark Greek debt and German bunds widened to the most on record. Fitch Ratings said it downgraded Greece’s credit ratings by three levels to B+ from BB+, four notches below investment grade. German bonds rallied as European Central Bank Council member Jens Weidmann said the bank may no longer be able to accept Greek bonds as collateral if maturities are extended, stoking demand for the relative safety of Europe’s benchmark debt.